12 Nov 2011

Zero growth for Spain in Q3

1:32 pm on 12 November 2011

Latest official statistics indicate Spain's economy registered zero growth in the third quarter of the year.

Output between July - September was unchanged compared with the previous three months and up 0.8% from a year earlier.

That follows growth of 0.2% in the previous quarter. The unemployment rate is 22%.

The Spanish statistics office said domestic spending continued to contract, although this was offset by a rise in export demand.

The BBC reports Spain's borrowing costs have risen sharply in the last two months. The cost of borrowing for 10 years peaked at 5.9% on Thursday, up from 5% in early October.